Vietnam Gold Prices Soar Amid Weaker US Dollar and Lower Interest Rate Expectations
Gold prices surged on August 15th in Vietnam as the US dollar weakened. According to Trading Economics, the spot price of gold in the Asian market at 1:30 PM was trading around $4,375 per ounce.
The sharp increase in gold prices follows a week where global gold prices rose by approximately 0.7% due to a weaker US dollar and lower interest rate expectations. The US dollar index fell 0.3%, making gold bullion priced in US dollars more affordable for overseas buyers.
Jim Wyckoff, market analyst at American Gold Exchange, noted that the decline in the USD index is a positive signal from the external market, supporting gold prices at the end of the session. Wyckoff also warned that if crude oil prices continue to rise, it will be a negative factor for the metals market because it will fuel inflation and prompt central banks to raise interest rates.
As a result of these factors, experts predict that global gold prices may maintain their upward momentum next week, having held above the crucial $4,300/ounce level this week. In Vietnam, SJC gold bars saw a surge of 700,000 - 1.1 million VND/ounce compared to early this morning, with some major brands such as Bao Tin Manh Hai and Bao Tin Minh Chau experiencing sharp increases in selling price.